North Carolina Down Payment Assistance Programs

Online Payments - The North Carolina Housing Finance Agency has two amazing programs for first-time Home Buyers. These programs are the deposit Assistance System along with the Mortgage Credit Certificate.

Also you purchase a property between January 1, 2009 and December 1, 2009 and if you meet the requirements for one of these plans, you can even be eligible for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? A First Time Home Buyer is someone who hasn't owned a house in the prior three years. That is precisely the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with low and average incomes. All home owners can claim an itemized deduction. An MCC “reduces your tax liability based on a share of the mortgage interest that you pay.

Should you qualify for the MCC, you are able to claim 20% of the interest you pay as a credit in your federal income taxes on your mortgage. It's possible for you to save around .

You may have the ability to unite this, if you do qualify for 2009. This might reduce the tax liability of a buyer's .

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and every other person anticipated to live in the residence who's 18 years of age or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limitations 1 Person $61,500 2 Persons $61,500 3 Men $70,500 4 Individuals $70,500

MCC Sales Price Limitations New Dwelling $220,000 Existing Residence $210,000

Home buyers that need help with their deposit and closing prices may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The purchaser just needs to pay and the load would pay as much as $8,000 of the remaining balance.

This plan has stricter income limitations than the MCC plan outlined above. Like the MCC program, it may be used in combination with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit help, nevertheless, can not be employed in combination with all the MCC. This really is an either or situation.

The income and house price limits that apply in Durham Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Individuals $45,650 3 Individuals $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New House $210,000 Existing House $210,000